(Bloomberg) -- Assicurazioni Generali SpA is considering a deal to acquire New York-based credit investment firm MGG Investment Group, people familiar with the matter said, as the Italian insurer looks to expand in the private asset business.
Generali has held early talks with MGG Investment about a potential transaction, which could value the US firm at several hundred million dollars, the people said. The Italian firm is aiming to reach an agreement before its investor day on Jan. 30, one of the people said.
Deliberations are ongoing and could end without an agreement, said the people, who asked not to be identified as the information is private. A representative for Generali declined to comment, while a representative for MGG Investment didn’t respond to requests for comment.
MGG Investment has deployed about $10 billion since its inception in 2014, its website shows. It has offices in New York, San Francisco, Chicago, Dallas and Atlanta.
Generali aims to grow further in asset management to build up a global platform and speed up diversification, Chief Executive Officer Philippe Donnet said in a press conference in August. The company ruled out any significant acquisition this year as the insurer is working on its new strategic plan, he added.
The Italian firm oversaw assets of €821 billion ($896 billion) as of the end of June, its latest earnings shows. The company this year acquired asset manager Conning Holdings Ltd. that has investment centers in Asia, Europe and North America with more than $117 billion of assets under management.
Shares of Generali have risen about 33% this year, giving the insurer a market value of about €40 billion.
(Adds Generali’s share move in last paragraph.)
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